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Joint | May 19, 2015 | Press Room | Press Conference: Rep. Saine

Full MP3 Audio File

Good morning, Good morning everyone. Thank you for giving us time today to discuss jobs. I want to thank Senator Brown and Representative Saine for their setting this room up, and for this special event and this special day, to talk about jobs in North Carolina. My name is Michael Smith I'm present at the North Carolina economic developer association. I'm here today not only as present of NCDA. also as a local Economic Development director in States Bill, I'm joined today in rolling by my fellow NCDA board members from across the state. and across our association. NCEDE is the statewide network for economic developers across North Carolina. Our members are on the frontline for job creation in their communities across North Carolina both large and small communities. In today's global climate business retention and recruitment strategies require an emphasis on competitive corporate tax rates, strong workforce training and the option of economic development incentives to attract businesses and to help grow and retain current operations. As economic development professionals, it's our responsibility to make sure that North Carolina remains competitive in the ever changing marketplace. In order to keep North Carolina growing, we must maintain and strengthen the performance-based, self-funded, Job Development Investment Grant program. JDIG is a key tool for tracking high impact investment, in a fast moving competitive market. JDIG's flexibility and accountability, have made it a model for how States can grow good jobs and pay strong wages. By design, JDIG shows a positive return on investment for the taxpayers of North Carolina. This also accounts for the program's impact. This important tool has been a part of a large number of significant projects across our State. WIthout it, economic developers along North Carolina would operate at a distinct disadvantage. Regardless of where announcements take place, both urban and rural areas benefit from neighboring counties winning projects. Thousands of North Carolina workers cross county boarders every day in every region. All North Carolina communities benefit from the JDIG program. In fact over $80 million has been with held from that particular program and gone into a specific utility fund that supports rural economic infrastructure projects. The JDIG program has been nationally recognized several times recently. Including in 2012 by the few center for public interest they named North Carolina one of only 13 states that were leading the way, in generating much needed answers about tax and incentive effectiveness. Also in 2014 good jobs first, ranked North Carolina number three in terms of transparency of job creation in senior program this sales tool was put in place in response to our competition now is not the time to move backwards on this important subject the bottom line J-dig is a critical tool for creating new jobs in North Carolina it enables this state to be competitive and economic development or attracting jobs just last week the automotive announcement that was their in South Carolina used a very similar performance based program as one part of a large package that help win that deal, their is an immediate need to raise the J-dig we know their are real projects in jeopardy now if we don't do so in every region in North Carolina, moreover their is a real need for long term extension of the JJ program that provides certainty for the private sector looking at making complicated decisions, they make ring or expand new jobs in North Carolina but only with this certainty in the market place it's through that expansion we are on the front lines of economic development in this room everyday we stand here united urging the general assembly to keep us competitive and act on JJ now let us be clear NCDA is supportive of other economic development in senate proposals that would help us create jobs in the state, however our focus today is to strongly urge the general ten play members to pass the JJ bill encompasses the provisions that we mentioned now we need to pass this month just yesterday afternoon I was in state field with a large project they were looking here and they were also looking at several adjoing states projects of that size of state programs really put that at risk also

more recently I talked I would another developer that's looking at making a large development in our region and again without JJ in the market place they cant effectively go to their board and given a reason to make that investment in North Carolina now NCDA's goal is to ensure their are states economic development efforts continue to encourage prosperity and job creation for all North Carolinian's. The investment North Carolina has made over the years in economic development has generated strong returns all across our state, and we will continue to work to expand that work for even greater returns. Thank you again for your time and your attention, to this key job creation program and we're happy to answer any questions you might have. Hey, you talked about raising the JDIG, cap I'm wondering what your recommendation is [xx] Thank you for that question. I would say actually to have it not capped. Because it is performance based and it is self funded and so that would mean in some years, that the JDIG amount would be higher in other years it might be lower. For example the JDC program on which this was modeled for South Carolina doesn't have a cap. There are other States that have this similar program they don't have a cap again because it is self funded. Do you think it's realistic considering how so members fill for the [xx] It might be, but again I think if this is a program is performance based and it's self funded again some years it might have more of an impact and others in terms of bottom line stand point but again I think that because this is something that is another part of this program that I think is key is there is a five member panel that makes this decision this is not the governor it's not secretary is a five member panel makes this decision the other thing I think is helpful is something called inplant that is done on each of these projects, and that's [xx] from State University in terms of what the model shows, and so again, between the five-person committee and Dr. Wabs model I think this is really set-up to help protect the tax payers. Have you had a business or CEO and executive say we are not coming we can't do this right now North Carolina because there is no money in the [xx] Recently there was a large developer in Charlotte region that sent a letter that talked about that specific point, they've put a lot of private investments in their project and the point of this letter was until they're certainty on this specific program they won't do it. Certainly Charlotte has a lot of interesting challenges without being immediately chasing to South Carolina and that area being able to use Charlotte as also a great selling tour to them because Charlotte is also a great selling tool for them because Charlotte is a great place but absolutely, there's that project. One of the ways to answer this too is the way economic works in 2015, there's a lot of information certainly available through companies and consultancy, so there are research  with that information online, so in essence in a lot of cases where we are losing deals that we don't know about because they see that uncertainty. The other thing too, something that the NCEDA is happy to get out for you all later on today, is a comparative matrix that shows about a dozen different states with them we compete, in most of these states much like North Carolina they have a republican governor, they have Republican control of the state house, but they also have little taxes and they also have aggressive incentive programs. Thank you again for being here today, we certainly appreciate your support for economic development in North Carolina and we look forward to spending time today with our elected representatives here in Riley, thank you. If the members of legislative co-chairs Anny[sp?], Steve, Hurt can step there with Mike and Andrew that will be great. And everyone else I appreciate you all being here and I look forward to hearing how you're.